‘Voluntary’ and ‘involuntary’ early retirement: an international analysis

Dorn, David; Sousa‐Poza, Alfonso

doi:10.1080/00036840701663277

Cited by 161 publications

(136 citation statements)

References 25 publications

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“…Like other social groups, work organizations have shared expectations about ages at which particular transitions ought to occur (Lawrence 1996 and much more externally structured and constrained than previously assumed. Dorn & Sousa-Poza (2010) show that generous early retirement programs do not only trigger more voluntary early retirement, but also more involuntary retirement, suggesting that social security benefits make it more attractive for firms to reduce their workforce using early retirement In many countries social security and pension reforms make it increasingly difficult for employers to lay off older workers via social security prior to the retirement age.…”

Section: Stereotype View On the Timing Of Retirementmentioning

confidence: 99%

The Employer’s Perspective on Retirement

Henkens¹,

Dalen²

2012

Oxford Handbooks Online

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In this chapter we discuss the literature with respect to the role of employers in retirement processes of older workers and provide suggestions for future research. In the first part of this chapter we will review existing theoretical insights regarding the employers' actions and attitudes toward older workers and retirement. In the next section we will discuss empirical findings with regard to age related stereotypes in the workplace and age norms with respect to retirement and present some results form an international comparative employer study. We conclude with a section on the management of retirement processes, focussing on the exit and hiring of older workers. 3 IntroductionExtending people's working life is seen as a key element in curtailing the rising costs associated with an ageing population. In the countries of the OECD and of the European Union, a host of initiatives have been taken that aim to delay retirement and support the labour force participation of older workers (OECD 2006b). At the government level, these initiatives vary from pension reforms that limit opportunities for an early exit from the workforce to legislation against age discrimination and public campaigns to combat negative stereotyping in the workplace. At the organisational level, employers are urged to develop policies geared towards increasing the employability of older workers, for instance by means of life-long learning. However, these government initiatives may not achieve their goals if proposals and targets for extending the working life of older workers are not actively supported by employers. Vickerstaff, Cox and Keen (2003) state that any significant change in retirement behaviour will come primarily from changes in employer policies. In this article we argue that for a better understanding of older workers' career decisions we need to incorporate the driving forces of retirement processes at the demand side of the labour market. Employers are key players in defining the opportunities for retirement as well as the opportunities for working longer. As a result, the success of policies aimed at delaying retirement depend to a large extent on the actions and attitudes of employers.Although retirement has traditionally been thought of as a discrete and abrupt discontinuation of work, today's "retirement" can be characterized as a process which can take multiple forms offering the option of a gradual transition from full time work to 'full time' retirement. While some older workers are affected by processes of disengagement from work and mental withdrawal from their jobs even years before they actually retire In this article we discuss the relevant literature with respect to the role of employers in retirement processes of older workers. In the first part of this article we will review existing theoretical insights regarding the employers actions and attitudes toward older workers and retirement. In the next section we will discuss empirical findings from the Hendrikse, and Schippers 2010) point of view. These stu...

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Section: Stereotype View On the Timing Of Retirementmentioning

confidence: 99%

The Employer’s Perspective on Retirement

Henkens¹,

Dalen²

2012

Oxford Handbooks Online

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“…There is a growing literature that distinguishes between "voluntary" and "involuntary" withdrawal from the labor force. 6 Dorn and Sousa-Poza (2007) for example find that strict employment protection regulation and increasing unemployment rates increases the fraction of early retirees reporting their decision for early retirement as "involuntary". Chan and Huff-Stevens (2002) find for the US that the effect of displacement on the probability of early retirement significantly exceeds the effect explained by the subsequent changes in the option value, i.e.…”

Section: Literature and Hypothesesmentioning

confidence: 99%

Financial incentives to postpone retirement and further effects on employment — Evidence from a natural experiment

Hanel

2010

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper examines the effect of the introduction of permanent benefit reductions for early retirees (i) on the duration until retirement entry and (ii) on the duration until exit from gainful employment. I estimate discrete time duration models using different error term specifications. Administrative data containing the full earnings history of the individuals are used. Since the reform implementing the benefit reductions was a natural experiment, a true causal effect can be identified. The permanent reduction of retirement benefit amounts causes a postponement of retirement entry by about fifteen months and a delay of employment exit by about nine months on average. Terms of use: Documents in EconStor may

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“…Moreover, although we are currently witnessing increasing proportions of active older people in many social contexts, academic research into late retirement is clearly underdeveloped when compared to the vast number of international studies centred on early retirement (see for example Lund and Villadsen 2005;Dorn and Sousa-Poza 2010;Radl 2013). There is an extensive literature on early retirement in Switzerland as well, whereas the issue of the continuity of professional activity after the legal retirement age remains barely explored.…”

Section: Introductionmentioning

confidence: 99%

“…a decision based mainly on worker preferences) and involuntary retirement (i.e. a result of life/work restrictions), it has been remarked that, at international level, the influence of factors in workers' life courses is of the utmost importance (Dorn and Sousa-Poza 2010).…”

Section: Introductionmentioning

confidence: 99%

How voluntary is the active ageing life? A life-course study on the determinants of extending careers

Madero-Cabib

Kaeser

2015

Eur J Ageing

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In Switzerland, as in many other European states, there is an increasing emphasis in public policy on promoting later retirement from the labour market. But this accelerating drive in Swiss policy-making to extend occupational activity does not mean that every worker is currently likely to retire late, nor does it imply that all those who do retire late do so voluntarily. This article uses a life-course approach, first to study the determinants of late retirement, and secondly to analyse whether the decision to postpone retirement is made voluntarily or involuntarily. Both objectives are addressed on the basis of data from the Swiss survey Vivre/Leben/Vivere. The results of logistic regression modelling indicate that, whereas self-employed and more highly educated individuals are more likely to retire late, people with access to private pension funds and workers who have benefited from periods of economic growth have a lower tendency to retire late. Regarding voluntariness, those who are more likely to opt for voluntary late retirement tend to be Swiss citizens, more highly educated, and also benefited from periods of economic expansion, while the self-employed, men and widowed individuals leaving the labour market late tend to do so involuntarily. In conclusion, the article discusses the absence of a social inequality debate in the design of active ageing policies

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‘Voluntary’ and ‘involuntary’ early retirement: an international analysis

Cited by 161 publications

References 25 publications

The Employer’s Perspective on Retirement

The Employer’s Perspective on Retirement

Financial incentives to postpone retirement and further effects on employment — Evidence from a natural experiment

How voluntary is the active ageing life? A life-course study on the determinants of extending careers

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